Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM]"Rubberband Sell Rule"
Date: Tue, 11 Dec 2001 18:52:34 -0600
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Hi Pat,
As of now, I manually enter the base low (because that's a read off the =
charts--I use the DGO marker) and the MA's. My software automatically =
calculates the MA's, but does not allow me to export them as values. =
Even the new DGO beta doesn't allow that, though you can screen on % =
above/below the MA's. (aaargh) The Price I export from my software along =
with other information each day, so it's no problem. I know there's =
software/charting packages that would export the MA's but unfortunately, =
I don't own any of them! I'm only worried about calculating something =
like this on my holdings or on potential shorts, so the list isn't all =
that big. Before I set up these calcs in my watch spreadsheet, I used to =
do the calculations by hand. Now *that's* crazy, isn't it!
My pleasure to share the spreadsheet,
Katherine
----- Original Message -----=20
From: Pat=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, December 11, 2001 7:45 PM
Subject: Re: [CANSLIM]"Rubberband Sell Rule"
Katherine,
Do you manually enter the data for each stock?
Or is there a free source that will provide the necessary=20
data that one could copy & paste easily into the=20
Robberband Spreadsheet?
Thanks for sharing the spreadsheet!
Pat
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Monday, December 10, 2001 6:23 AM
Subject: Re: [CANSLIM] PECS & "Rubberband Sell Rule"
Hi Chris,
I agree with you on the vague nature of WON's sell rule and it's the =
reason that I was happy to have found these additional criteria. A stock =
could easily rise 70% above the 200dMA, but if the price behaves as you =
would expect, you'll see mostly accumulation days and the 200dMA will =
rise with the price. That would be a good stock in my book!
I keep 3 kinds of records related to buying and selling. First, I =
have a buy and a sell checklist. All the appropriate items have to be =
checked before I'll buy. When a sell rule is hit, out it goes. (The =
rubberband rule, along with a couple of others are what I call "warning" =
sell rules. I do not sell unconditionally on this trigger alone.) =
Second, I make a notation in my trading journal that will state my =
general reason for buying/selling along with other general observations =
about what is going on that might have affected the decision. What I'm =
trying to do is keep a record of my "mental state" when buying/selling. =
(The journal itself contains more than buy/sell info.) Third, a printout =
of the chart on the buy and sell date. Here I'll highlight all the =
appropriate technicals, making note of industry RS and other things that =
don't show on the DGO chart. The buy and sell charts get stapled =
together and put into a trading journal. All of these things allow me to =
go back on a regular basis and find weaknesses. It is through these =
kinds of reviews that I am able to enhance a strategy, find errors or =
identify my hot buttons. Believe me, there's plenty of those to contend =
with!=20
Katherine
----- Original Message -----=20
From: Chris Dempsey=20
To: canslim@lists.xmission.com=20
Sent: Sunday, December 09, 2001 11:49 PM
Subject: RE: [CANSLIM] PECS & "Rubberband Sell Rule"
Katherine,
Thanks for the idea. Sell rule 34 has always bothered me. "Some =
stocks can be sold when they are 70 to 100% above their 200-day. This in =
many instances seemed to soon. This looks like it will help determine =
which stocks. Have you done any analysis of you trades to determine the =
accuracy of this formula.
What records do you keep when you buy and sell a stock?
Chris
-----Original Message-----
From: owner-canslim@lists.xmission.com =
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Friday, December 07, 2001 9:42 AM
To: CANSLIM List Posting
Subject: [CANSLIM] PECS
Just so you guys don't blame this one on the "IBD curse"...
Here's a good example of the "Rubberband Sell Rule" in action:
PECS B/O on 11/14.
Rubberband Sell Rule:
If all three of these criteria are met, be prepared to sell, as =
the price
can fall 15-25%:
(1) >125% above the recent base low AND
(2) >70% above the 200 day MA AND
(3) >25% above the 50 day MA.
For PECS intraday 12/5/01 when P was $40.12:
(1) recent base low $12.50, +221%
(2) 200dMA $19.23, +108%
(3) 50dMA $24.51, +64%.
Based on that, on 12/5 price, your choices were:=20
(1) Sell all or portion of position
(2) Intend to buy back as it returns to intermediate term trend
(3) Move on to another position
12/6 was a distribution day, the first in its advance.
This morning an analyst downgraded to hold based on valuation, =
stock gapped down on open.
So, depending on your choice, the next rule to kick in is the =
WON rule for stocks moving up >=3D20% within 8 weeks after breakout:
If a stock does this, hold on through the first correction.
If you make this choice, you then just have to watch that the IT =
trend is not violated as it makes its correction.
If other sell rules kick in, out it goes.
Katherine
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<DIV><FONT face=3DArial size=3D2>Hi Pat,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>As of now, I manually enter the base =
low (because=20
that's a read off the charts--I use the DGO marker) and the MA's. My =
software=20
automatically calculates the MA's, but does not allow me to export them =
as=20
values. Even the new DGO beta doesn't allow that, though you can screen =
on %=20
above/below the MA's. (aaargh) The Price I export from my software along =
with=20
other information each day, so it's no problem. I know there's =
software/charting=20
packages that would export the MA's but unfortunately, I don't own any =
of them!=20
I'm only worried about calculating something like this on my holdings or =
on=20
potential shorts, so the list isn't all that big. Before I set up these =
calcs in=20
my watch spreadsheet, I used to do the calculations by hand. Now =
*that's* crazy,=20
isn't it!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>My pleasure to share the =
spreadsheet,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dthrill5@flinet.com =
href=3D"mailto:thrill5@flinet.com">Pat</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, December 11, =
2001 7:45=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: =
[CANSLIM]"Rubberband Sell=20
Rule"</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Katherine,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Do you manually enter the data for =
each=20
stock?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Or is there a free source that will =
provide=20
the necessary </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>data that one could copy & paste =
easily into=20
the </FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Robberband Spreadsheet?</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Thanks for sharing the =
spreadsheet!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Pat</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, December 10, =
2001 6:23=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] PECS =
&=20
"Rubberband Sell Rule"</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>Hi Chris,</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I agree with you on the vague =
nature of WON's=20
sell rule and it's the reason that I was happy to have found these=20
additional criteria. A stock could easily rise 70% above the 200dMA, =
but if=20
the price behaves as you would expect, you'll see mostly =
accumulation days=20
and the 200dMA will rise with the price. That would be a good stock =
in my=20
book!</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I keep 3 kinds of records =
related to=20
buying and selling. First, I have a buy and a sell checklist. All =
the=20
appropriate items have to be checked before I'll buy. When a sell =
rule is=20
hit, out it goes. (The rubberband rule, along with a couple of =
others are=20
what I call "warning" sell rules. I do not sell unconditionally on =
this=20
trigger alone.) Second, I make a notation in my trading journal that =
will=20
state my general reason for buying/selling along with other general=20
observations about what is going on that might have affected the =
decision.=20
What I'm trying to do is keep a record of my "mental state" when=20
buying/selling. (The journal itself contains more than buy/sell =
info.) Third, a printout of the chart on the buy and sell date. =
Here=20
I'll highlight all the appropriate technicals, making note of =
industry RS=20
and other things that don't show on the DGO chart. The buy and =
sell=20
charts get stapled together and put into a trading journal. All of =
these=20
things allow me to go back on a regular basis and find weaknesses. =
It is=20
through these kinds of reviews that I am able to enhance a strategy, =
find=20
errors or identify my hot buttons. Believe me, there's plenty =
of those=20
to contend with! </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Katherine</FONT></DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dcdempsey@houston.oilfield.slb.com=20
href=3D"mailto:cdempsey@houston.oilfield.slb.com">Chris =
Dempsey</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Sunday, December 09, =
2001 11:49=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] PECS =
&=20
"Rubberband Sell Rule"</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001>Katherine,</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001>Thanks for the idea. Sell rule 34 has =
always=20
bothered me. "Some stocks can be sold when they are 70 to 100% =
above their=20
200-day. This in many instances seemed to soon. This looks like it =
will=20
help determine which stocks. Have you done any analysis of you =
trades to=20
determine the accuracy of this formula.</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001>What records do you keep when you buy =
and sell a=20
stock?</SPAN></FONT></DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001></SPAN></FONT> </DIV>
<DIV><FONT face=3DArial color=3D#0000ff size=3D2><SPAN=20
class=3D737562605-10122001>Chris</SPAN></FONT></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of =
</B>Katherine=20
Malm<BR><B>Sent:</B> Friday, December 07, 2001 9:42 =
AM<BR><B>To:</B>=20
CANSLIM List Posting<BR><B>Subject:</B> [CANSLIM]=20
PECS<BR><BR></FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Just so you guys don't blame =
this one on=20
the "IBD curse"...</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Here's a good example of the =
"Rubberband=20
Sell Rule" in action:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>PECS B/O on 11/14.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Rubberband Sell =
Rule:</FONT></DIV>
<DIV>If all three of these criteria are met, be prepared to =
sell, as the=20
price<BR>can fall 15-25%:<BR>(1) >125% above the recent base =
low=20
AND<BR>(2) >70% above the 200 day MA AND<BR>(3) >25% above =
the 50=20
day MA.<BR></DIV>
<DIV><FONT face=3DArial size=3D2>For PECS intraday 12/5/01 when =
P was=20
$40.12:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>(1) recent base low $12.50,=20
+221%</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>(2) 200dMA $19.23, =
+108%</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>(3) 50dMA $24.51, =
+64%.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Based on that, on 12/5 price, =
your choices=20
were:=20
<DIV><FONT face=3DArial size=3D2>(1) Sell all or portion of=20
position</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>(2) Intend to buy back as it =
returns to=20
intermediate term trend</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>(3) Move on to another=20
position</FONT></DIV></FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>12/6 was a distribution day, =
the first in=20
its advance.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>This morning an analyst =
downgraded to hold=20
based on valuation, stock gapped down on open.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>So, depending on your choice, =
the next rule=20
to kick in is the WON rule for stocks moving up >=3D20% =
within 8 weeks=20
after breakout:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>If a stock does this, hold on =
through the=20
first correction.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>If you make this choice, you =
then just have=20
to watch that the IT trend is not violated as it makes its=20
correction.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>If other sell rules kick in, =
out it=20
goes.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial=20
=
size=3D2>Katherine</FONT></DIV></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></B=
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